Proof of funds

[zanny]

Hi Guys,

Need some help on proof of funds. My education credentials is currently being checked by WES and i am planning to apply as soon as I get the report from WES.

I have a query on proof of funds.

I have close to CAD 20K in mutual funds and stocks. They have been on my name for over 5yrs. Can I show it in proof of funds? Or do they take only cash and FD as proof?

What if I sell these mutual funds and move the money to my saving account today?

 

[Hhh466]

You will need to sell your investments since in their current state their value is pretty volatile and CIC does not like that. Since you will be making a lump sum deposit in to your savings account from the proceeds of the sale you will have to prove that the funds are not borrowed. However, that will be pretty simple in this case since you just need to show them your trade confirmations which will have your information on it. That way they will know that the investments belonged to you and hence the funds are not borrowed.

 

[jes_ON]

"when all else fails, read the directions."

http://www.cic.gc.ca/english/immigrate/skilled/funds.asp

These funds could be in the form of:
- cash
- documents that show property or capital payable to you (such as stocks, bonds, debentures, treasury bills, etc.) or
- documents that guarantee payment of a set amount of money, which are payable to you (such as bankers’ drafts, cheques, travellers’ cheques or money orders).

So, YES, you can use these funds, and NO, you do not have to sell them.

 

[zanny]

"when all else fails, read the directions."



These funds could be in the form of:
- cash
- documents that show property or capital payable to you (such as stocks, bonds, debentures, treasury bills, etc.) or
- documents that guarantee payment of a set amount of money, which are payable to you (such as bankers' drafts, cheques, travellers' cheques or money orders).

So, YES, you can use these funds, and NO, you do not have to sell them.

Thanks a lot for sharing this. I think my mutual funds and stocks need not be liquidated. My doubt was Hhh466 mentioned - Usually Mutual funds and stocks are considered volatile and are used with a hair cut in normal banking world. It will be great if CIC considers my investments into stocks and mutual funds as fund available to me without a haircut

 

[Asivad Anac]

Thanks a lot for sharing this. I think my mutual funds and stocks need not be liquidated. My doubt was Hhh466 mentioned - Usually Mutual funds and stocks are considered volatile and are used with a hair cut in normal banking world. It will be great if CIC considers my investments into stocks and mutual funds as fund available to me without a haircut

That shouldn't be the link you look at. Check the 'Proof of funds' here ---> http://www.cic.gc.ca/english/resources/tools/perm/express/intake-complete.asp

CIC explicitly states that they require a bank certificate as POF. That other link talks about monies you can 'bring' into Canada. I'm fairly certain CIC has no qualms about you holding foreign assets but those cannot be declared in toto as part of your POF. Only those assets can be used as POF which are,

1. held by the PA

2. liquid in nature

3. unencumbered

Mutual funds, equity holdings, property, vehicles, jewelry are excluded from the list.

Purpose

To confirm whether the applicant meets the low income cut-off (LICO), as assessed by amount of money they hold compared to the number of people in their family

Document requirements

The applicant should provide official letter(s) from financial institution(s) which list all current bank and investment accounts, as well as outstanding debts such as credit cards and loans.

The letter(s) must be printed on the letterhead of the financial institution and must include applicant’s name, the contact information of the financial institution (address, telephone number and e-mail address), the account numbers, dates of when each account was opened and the current balance of each account as well as the average balance in the past six months.
Other documents may also be requested, as necessary.

Individuals who must submit this documentation

The principal applicant

 

[indianaspirant]

i agree with asivad

 

[zanny]

Thanks Asivad for the guidance.

So should i liquidate my mutual fund holdings and move the money into my bank account? Will there be a problem because of this sudden move of money - I can show that I sold funds, which were on my name, to move money into my account. Will this work?

That shouldn't be the link you look at. Check the 'Proof of funds' here --->

CIC explicitly states that they require a bank certificate as POF. That other link talks about monies you can 'bring' into Canada. I'm fairly certain CIC has no qualms about you holding foreign assets but those cannot be declared in toto as part of your POF. Only those assets can be used as POF which are,

1. held by the PA

2. liquid in nature

3. unencumbered

Mutual funds, equity holdings, property, vehicles, jewelry are excluded from the list.

 

[Asivad Anac]

Thanks Asivad for the guidance.

So should i liquidate my mutual fund holdings and move the money into my bank account? Will there be a problem because of this sudden move of money - I can show that I sold funds, which were on my name, to move money into my account. Will this work?

That would work. Attach any other documentation that proves these funds belong rightfully to you along with your POF and attach an LOE to explain this further as well.

 

[sumitkathare]

Does the Bank certificate have to be in Local currency ( im from India, so Rupees), or does it also have to show the equivalent conversion to CAD?
I have a FD of INR 1500000, but have taken a loan of INR 500000 on that. Does it still hold good as Proof of Fund? I have applied for EE for Myself+Spouse

 

[Asivad Anac]

Does the Bank certificate have to be in Local currency ( im from India, so Rupees), or does it also have to show the equivalent conversion to CAD?
I have a FD of INR 1500000, but have taken a loan of INR 500000 on that. Does it still hold good as Proof of Fund? I have applied for EE for Myself+Spouse

It has to be in the local currency because that's what the funds are in as well. If you can successfully ask your bank to avoid mentioning the loan in the certificate/letter, this can work as POF.

 

[ally89u]

Sorry to piggy back but I have a question related to this as well!!

I live in the UK and my banks will not provide me with a proof of funds letter - i have tried talking to them several times but they seem to refuse with a variety of excuses. I have my online bank statements that I could upload but these do not have the date from which the account was opened. What can I do? Is it enough to upload:

- Bank statements for all accounts for the past 6 months
- A self-certified letter from my mother to say she has gifted us the large sum of money recently received
- A letter of explanation from myself explaining my bank won't issue me a letter as required because apparently they just don't do that in the UK

Any help would be appreciated!!

Thanks,

 

[Asivad Anac]

Sorry to piggy back but I have a question related to this as well!!

I live in the UK and my banks will not provide me with a proof of funds letter - i have tried talking to them several times but they seem to refuse with a variety of excuses. I have my online bank statements that I could upload but these do not have the date from which the account was opened. What can I do? Is it enough to upload:

- Bank statements for all accounts for the past 6 months
- A self-certified letter from my mother to say she has gifted us the large sum of money recently received
- A letter of explanation from myself explaining my bank won't issue me a letter as required because apparently they just don't do that in the UK

Any help would be appreciated!!

Thanks,

It will be tough to explain this to CIC that banks in UK do not provide such certificates/letters. It is a fairly established practice and banks have standard formats to help their customers with such requests.

Online statements that are not signed/stamped by bank personnel won't be accepted by CIC.

A signed self-declaration from your mother about the gift will work fine.

Recommend that you check with your bank again and tell them that all CIC is looking for is fairly basic information about your bank account(s).

You need a letter printed on the letterhead of the financial institution which includes,

1. Your name

2. Contact information of the bank (address, telephone number and e-mail address)

3. Account number(s) If all the POF can be shown in just one account, you don't need to mention other account(s).

4. Dates of when each account was opened

5. Current balance of each account

6. Average balance in past six months CIC needs this just to check if you have borrowed funds. In your case, you're anyways providing this letter.

All the best!

 

[ally89u]

It will be tough to explain this to CIC that banks in UK do not provide such certificates/letters. It is a fairly established practice and banks have standard formats to help their customers with such requests.

Online statements that are not signed/stamped by bank personnel won't be accepted by CIC.

A signed self-declaration from your mother about the gift will work fine.

Recommend that you check with your bank again and tell them that all CIC is looking for is fairly basic information about your bank account(s).

You need a letter printed on the letterhead of the financial institution which includes,

1. Your name

2. Contact information of the bank (address, telephone number and e-mail address)

3. Account number(s) If all the POF can be shown in just one account, you don't need to mention other account(s).

4. Dates of when each account was opened

5. Current balance of each account

6. Average balance in past six months CIC needs this just to check if you have borrowed funds. In your case, you're anyways providing this letter.

All the best!

Thanks for replying!!

Unfortunately I have now spoken to both my banks 4 times.. I am going back into branch tomorrow to try and persuade them again - just keep going around in circles!

The other thing is that the bank account that has the funds needed was recently moved from one bank to the other, so the old bank says they wont give us information on our previous account as it is now closed, and the new bank say they wont write us the letter because we have not been with them for longer than 6 months... is my best bet to change my funds to an older account? I don't really want to do this but I don't see a lot of options.

Thanks again

 

[Asivad Anac]

Thanks for replying!!

Unfortunately I have now spoken to both my banks 4 times.. I am going back into branch tomorrow to try and persuade them again - just keep going around in circles!

The other thing is that the bank account that has the funds needed was recently moved from one bank to the other, so the old bank says they wont give us information on our previous account as it is now closed, and the new bank say they wont write us the letter because we have not been with them for longer than 6 months... is my best bet to change my funds to an older account? I don't really want to do this but I don't see a lot of options.

Thanks again

Strictly speaking, the 6 months thingy is simply to ensure that borrowed funds aren't used as POF. In your case, you are planning to attach your mother's self declaration so it won't matter as much if the bank account is fairly recent. Proceed with the new bank account and explain it sufficiently well in an LOE.

 

[flavdcosta]

Strictly speaking, the 6 months thingy is simply to ensure that borrowed funds aren't used as POF. In your case, you are planning to attach your mother's self declaration so it won't matter as much if the bank account is fairly recent. Proceed with the new bank account and explain it sufficiently well in an LOE.

I have a question around proof of funds, some friends owed me money and now in order to get my updated bank statements I have had those friends repay me back.
There is a deposit of 1500 and 3343 into my account. Can i explain in an LOW as to how I have this money or just send the bank statements.

Would seeing the deposits a days before I ask for updated bank statements cause a red flag?